Editor's Note:

Shares of Starbucks Corp. (SBUX) hit our bullish target today. Meanwhile the broader market continues to climb with a four-day rally. The small cap Russell 2000 index is at a new all-time high.

Our ENR and NBL trades were triggered. JOY has been removed.


Current Portfolio:


CALL Play Updates

Automatic Data Processing - ADP - close: 71.04 change: +0.07

Stop Loss: 68.40
Target(s): 74.00
Current Option Gain/Loss: +21.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
07/09/13: I am disappointed with ADP's performance this week. Shares are up six days in a row but upward momentum has stalled the last couple of days. I suspect we will see ADP retest support near $70.00. The next challenge for the bulls is resistance at $72.00.

- Suggested Positions -

Long Aug $70 call (ADP1317H70) entry $1.65

07/06/13 new stop loss @ 68.40
06/27/13 new stop loss @ 67.90

Entry on June 18 at $69.25
Average Daily Volume = 1.8 million
Listed on June 17, 2013


The Boeing Co. - BA - close: 104.68 change: +0.31

Stop Loss: 102.45
Target(s): 107.00
Current Option Gain/Loss: - 2.3%
Time Frame: Exit prior to option expiration on July 19th
New Positions: see below

Comments:
07/09/13: BA spiked higher at the open. Shares hit $105.75. The rally didn't last and shares spent the rest of the session churning inside the $105.00-104.50 zone. Nimble traders could try buying dips near $104.00.

Earlier Comments:
This should be a very short-term trade. If triggered our short-term target is $107.00. More aggressive traders could definitely aim higher but I am expecting the $107.00-107.50 zone to be resistance. Since this is a short-term trade I'm using the July calls that only have two weeks left. If you are going to aim higher I would suggest a different month.

*small positions, short-term trade* - Suggested Positions -

Long Jul $105 call (BA1320G105) entry $1.33

Entry on July 08 at $104.35
Average Daily Volume = 4.7 million
Listed on July 06, 2013


Energizer Holdings - ENR - close: 104.97 change: +2.22

Stop Loss: 99.85
Target(s): 109.75
Current Option Gain/Loss: +27.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/09/13: ENR finally broke out past resistance near $103.00 and shares have closed at new multi-year highs. The move may have been fueled by an upgrade to "strong buy" this morning. The stock opened at $103.25, which just happens to be our suggested entry point to buy calls.

Our target is $109.75. More aggressive traders may want to aim higher. The Point & Figure chart for ENR is bullish with a $121 target.

- Suggested Positions -

Long Aug $105 call (ENR1317H105) entry $2.75*

*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on July 09 at $103.25
Average Daily Volume = 497 thousand
Listed on July 01, 2013


Flowserve Corp. - FLS - close: 55.75 change: +0.72

Stop Loss: 53.95
Target(s): 59.00
Current Option Gain/Loss: - 16.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/09/13: FLS managed to outperform the major indices with a +1.3% gain today. I don't see any changes from my prior comments.

Our multi-week target is $59.00 but we will plan on exiting prior to the earnings report.

- Suggested Positions -

Long Oct $60 call (FLS1319J60) entry $1.20*

*07/08/13 entry price on the option is an estimate since the option did not trade when our entry trigger was hit.

Entry on July 08 at $55.60
Average Daily Volume = 665 thousand
Listed on July 06, 2013


Medidata Solutions - MDSO - close: 79.08 change: -1.43

Stop Loss: 78.75
Target(s): 84.85
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
07/09/13: Hmm... there was no follow through in MDSO on yesterday's rally to new highs. Today's move has effectively erased yesterday's gains. The stock is once again testing short-term support near $78.00.

We are still on the sidelines. Our plan is to buy calls if MDSO can trade at $81.25 (or higher). If shares don't show improvement tomorrow we might drop it.

Earlier Comments:
I am suggesting a trigger to buy calls at $81.25. If triggered our target is $84.85 but we will plan on exiting positions prior to the next earnings report, which is expected in late July or early August. More aggressive traders may want to aim higher. The Point & Figure chart for MDSO is bullish with a $101 target.

Trigger @ 81.25

- Suggested Positions -

Buy the Aug $85 call (MDSO1317H85)

Entry on July -- at $---.--
Average Daily Volume = 190 thousand
Listed on July 08, 2013


Noble Energy - NBL - close: 63.86 change: +1.57

Stop Loss: 60.95
Target(s): 68.50
Current Option Gain/Loss: +18.5%
Time Frame: Exit PRIOR to earnings on July 25th
New Positions: see below

Comments:
07/09/13: Our new NBL trade has been triggered. Shares gapped open higher at $62.84 and quickly hit our suggested entry point at $63.05. Today's move is a new all-time high for the stock.

Earlier Comments:
If triggered our target is $68.50. However, we will plan on exiting positions prior to NBL's earnings report on July 25th. More aggressive traders may want to aim higher. This past week has generated a new triple-top breakout buy signal on the point & figure chart with a $74.00 target.

- Suggested Positions -

Long Aug $65 call (NBl1317H65) entry $1.35

Entry on July 09 at $63.05
Average Daily Volume = 1.9 million
Listed on July 06, 2013


Prudential Financial - PRU - close: 78.10 change: +1.32

Stop Loss: 74.75
Target(s): 79.00
Current Option Gain/Loss: +87.5%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
07/09/13: The rally in PRU continues with the stock outperforming the major indices thanks to a +1.7% gain on Tuesday. Shares are looking short-term overbought here. PRU is up seven out of the last eight trading days. Readers may want to consider taking profits now. I am adjusting our exit target down to $79.00. I am raising our stop loss to $74.75.

I repeat - readers may want to exit their calls now to lock in gains.

- Suggested Positions -

Long Aug $75 call (PRU1317H75) entry $2.40

07/09/13 new stop loss @ 74.75, adjust exit target to $79.00
07/02/13 new stop loss @ 72.40

Entry on July 01 at $73.65
Average Daily Volume = 3.1 million
Listed on June 29, 2013


Shutterfly, Inc. - SFLY - close: 56.80 change: -0.64

Stop Loss: 55.85
Target(s): 59.75
Current Option Gain/Loss: Jul55c: - 4.1% & Aug60c: - 2.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
07/09/13: Warning! I think it's time we start to worry about our SFLY trade. Upward momentum started to stall yesterday and shares underperformed the market today with a -1.1% decline.

I am raising the stop loss up to $55.85. More conservative traders may want to abandon ship now.

Earlier Comments:
A breakout higher could spark a short squeeze. The most recent data listed short interest at 19% of the small 34 million share float. FYI: The Point & Figure chart for SFLY is bullish with an $84 target.

- Suggested Positions -

Long Jul $55 call (SFLY1320G55) entry $2.40*

- or -

Long Aug $60 call (SFLY1317H60) entry $2.00*

07/09/13 new stop loss @ 55.85
07/02/13 new stop loss @ 54.75
07/01/13 new stop loss @ 53.25
06/29/13 new stop loss @ 52.75
06/26/13 triggered on gap open higher at $55.43. Trigger was $55.25
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on June 26 at $55.43
Average Daily Volume = 628 thousand
Listed on June 25, 2013


Toyota Motor Corp. - TM - close: 126.20 change: +1.30

Stop Loss: 118.90
Target(s): 130.00
Current Option Gain/Loss: + 2.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/09/13: TM hit a new six-week high with today's gain. I don't see any changes from my weekend comments. More conservative traders may want to start adjusting their stop loss higher. Readers may want to wait for a dip before considering new positions now.

- Suggested Positions -

Long Aug $130 call (TM1317H130) entry $2.80

07/02/13 trade opened on gap higher at $124.70, trigger was 123.65

Entry on July 02 at $124.70
Average Daily Volume = 694 thousand
Listed on July 01, 2013


PUT Play Updates

F5 Networks Inc. - FFIV - close: 69.36 change: +0.84

Stop Loss: 70.25
Target(s): 61.00
Current Option Gain/Loss: Unopened
Time Frame: Exit PRIOR to earnings on July 24th
New Positions: Yes, see below

Comments:
07/09/13: FFIV is still churning sideways inside the $68-70 zone.

We are suggesting a trigger to buy puts at $67.40. That means waiting for shares to breakdown below last week's low near $67.50. If we are triggered our target is $61.00.

Trigger @ 67.40

- Suggested Positions -

Buy the AUG $65 PUT (FFIV1317T65)

Entry on June -- at $---.--
Average Daily Volume = 1.7 million
Listed on June 29, 2013


Marathon Petroleum - MPC - close: 70.12 change: +0.68

Stop Loss: 72.25
Target(s): 62.00
Current Option Gain/Loss: -39.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
07/09/13: MPC has spent the last two days hovering near the $70.00 level. Shares remain just below their simple and exponential 200-dma and the simple 10-dma. I would be tempted to buy puts right here or you could wait for a new drop below $67.60.

- Suggested Positions -

Long Aug $65 PUT (MPC1317T65) entry $2.05

07/06/13 MPC has been volatile the last couple of trading days. Wait for a new low under $67.60 to launch new positions

Entry on July 03 at $68.25
Average Daily Volume = 3.2 million
Listed on July 02, 2013



Longer-Term Play Updates



Chicago Bridge & Iron - CBI - close: 60.72 change: +0.88

Stop Loss: 53.75
Target(s): 74.50
Current Option Gain/Loss: +41.1%
Time Frame: 4 to 6 months
New Positions: see below

Comments:
07/09/13: CBI displayed some relative strength today with a +1.4% gain. The close above its simple 30-dma is another bullish development. No new positions at this time.

*Small Positions* - Suggested Positions -

Long 2014 Jan $65 call (CBI1418A65) entry $2.55

06/29/13 CBI might be poised to dip into the $57-55 zone again.
06/24/13 triggered @ 56.75
06/22/13 adjust entry trigger to $56.75
06/15/13 entry strategy change: change the breakout trigger at $65.25 to a buy-the-dip trigger at $56.50. Adjust the stop loss to $53.75.
Adjust the option strike to the 2014 Jan. $65 call

Entry on June 24 at $56.75
Average Daily Volume = 1.8 million
Listed on June 01, 2013


CLOSED BULLISH PLAYS

Starbucks Corp. - SBUX - close: 68.13 change: -0.16

Stop Loss: 64.90
Target(s): 69.00
Current Option Gain/Loss: Jul$65c: +181.4% & Aug65c: +95.6%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
07/09/13: Target achieved.

SBUX was kind enough to hit our exit target at $69.00 this morning before reversing and closing in negative territory by day's end.

The stock remains in its bullish channel. Nimble traders could look for buy a dip or a bounce near the 40-dma or 50-dma.

- Suggested Positions -

Jul $65 call (SBUX1320G65) entry $1.35 exit $3.80 (+181.4%)

- or -

Aug $65 call (SBUX1317H65) entry $2.30 exit $4.50 (+95.6%)

07/09/13 target hit
07/06/13 adjust exit target to $69.00, consider exiting the July calls now with two weeks until expiration
07/02/13 new stop loss @ 64.90
07/01/13 new stop loss @ 63.40
06/27/13 new stop loss @ 62.75
06/21/13 triggered at $64.25.

chart:

Entry on June 21 at $64.25
Average Daily Volume = 4.6 million
Listed on June 20, 2013


CLOSED BEARISH PLAYS

Joy Global, Inc. - JOY - close: 49.48 change: +0.36

Stop Loss: 50.25
Target(s): 41.00
Current Option Gain/Loss: Unopened
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
07/09/13: JOY is not working out for us. We've been waiting for a breakdown below support. It looks like investors are content to buy it at these levels. Of course a four-day rally in the market doesn't hurt.

Our trade has not opened yet. The trigger was $47.40. Tonight we're removing JOY as a candidate but readers may want to keep this stock on their radar screen.

Trade did not open.

07/09/13 removed from the newsletter

chart:

Entry on June -- at $---.--
Average Daily Volume = 2.1 million
Listed on June 26, 2013